2A — July 2023 — M id A tlantic Real Estate Journal
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M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman AVP, Conference Producer ...........................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists ....................Howard Applebaum, Corporate America Realty & Advisors; David L. Church, CCIM, U.S. Realty Capital, LLC; Marcia Nathanson and Bruce Puleo, Heritage Abstract Company; Jonathan Rundlett, Exit; Jacob Strauss, PE, EWMA Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 35, Issue 7 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
Tips for Buying a Vacation Rental Jonathan Rundlett
efore purchasing a vaca- tion home, always take the time to review your financial situation. After all, buying a vacation home is a bit trickier than buying a primary residence. Lenders often con - sider it a riskier investment since people are more likely to default on a second home than on their primary residence, so prepare for stricter underwrit- ing guidelines and a higher down payment. The finances of owning a vacation property Many first-time buyers don’t realize that they need to be pre-approved for a loan before they even begin looking at properties, but this is crucial to getting the best deal on your vacation home purchase. Con - tact your bank or credit union to ask about their mortgage products and the rates they can offer. In addition to your monthly mortgage, you will need to cover additional maintenance issues. Remember that the older the B
property is, the higher your costs are likely to be. If you plan to rent your investment property, calculate for local cleaning, repair, and property management services. Working with a professional real-estate agent As you search for an invest - ment property, collaborate with a certified, professional real estate agent who can compare property values and determine whether local rent- al rates will enable you to achieve a positive cash flow. Real estate agents can also help you evaluate the current market and purchase when both prices and interest rates are at their best. Think through your goals for buying a vacation property
People purchase vacation homes for a variety of reasons. Some plan to offer the property as a short-term rental, some make it only available on a long-term basis, and others may reserve it strictly for personal use. Before you start looking at properties, it’s im - portant to solidify your goals. Do you want a vacation home, a rental property, or an invest- ment property? Short-term rentals offer higher rental income, but subject the property to greater wear and tear. Your plan for the property affects your cost of furnishing it. If you alone will enjoy the property, you can decorate it however you choose, but if you continued on page 12A
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